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📝 Basic knowledge and formulas · ⏱️ 2 min read

How do I calculate cost price when working with kilo prices?

📝 KitchenNmbrs · updated 17 Mar 2026

TL;DR

Working with kilo prices makes cost price calculation simpler. You don't need to track each supplier separately, but calculate directly with what you actually p...

Twenty years ago, most chefs tracked ingredient costs by invoice line items. Now, calculating with kilo prices cuts through the complexity and gives you direct insight into dish profitability. You'll know exactly what each portion costs without juggling multiple supplier spreadsheets.

From purchase price to actual kilo price

Your supplier's invoice shows one price, but your real cost runs higher. Cutting loss, waste, and prep time bump up what you actually pay per usable kilo.

💡 Example: Processing whole salmon

You buy whole salmon for €18.00/kg. After filleting you've got 55% left (45% cutting loss).

  • Purchase price: €18.00/kg
  • Yield: 55%
  • Actual fillet price: €18.00 ÷ 0.55 = €32.73/kg

Your salmon fillet costs €32.73/kg, not €18.00.

Calculate cost price per portion

With your real kilo price, portion costing becomes straightforward. Multiply portion weight by kilo price and you're done.

Formula: Cost price per portion = Portion weight (kg) × Actual kilo price

💡 Example: Steak cost price

You serve a 250 gram steak. Your actual kilo price for entrecote runs €42.00/kg.

  • Portion weight: 0.25 kg
  • Kilo price: €42.00
  • Meat cost: 0.25 × €42.00 = €10.50

Add sides and sauces to reach roughly €12.80 total cost price.

Calculate composite dishes

Dishes with multiple components need each ingredient calculated separately. Don't skip the small stuff - oil, butter, and spices add up faster than you'd think.

This is a pattern we see repeatedly in restaurant financials: operators nail the protein costs but underestimate garnish expenses by 15-20%.

  • Main ingredient (meat, fish) × weight × kilo price
  • Vegetables × weight × kilo price
  • Sauces and sides × weight × kilo price
  • Oil, butter, spices (estimate 5-10% of main ingredient)

💡 Example: Pasta carbonara

One portion of pasta carbonara breaks down to:

  • Pasta (100g): €0.12
  • Bacon (50g): €0.85
  • Eggs (1 piece): €0.25
  • Parmesan (20g): €0.60
  • Cream, butter, spices: €0.25

Total cost price: €2.07

⚠️ Note:

Update your kilo prices regularly. Suppliers bump prices without fanfare, and you might miss it for weeks. Review your core ingredients monthly at minimum.

Quick check of your calculation

Here's a fast way to verify your math: divide cost price by selling price (excl. VAT). That's your food cost percentage.

Food cost % = (Cost price ÷ Selling price excl. VAT) × 100

Most restaurants hit between 28% and 35%. If you're running much higher, either your dish costs too much to make or you're pricing it too low.

How do you calculate cost price with kilo prices? (step by step)

1

Determine your actual kilo prices

Account for cutting loss and processing costs. Divide your purchase price by the yield percentage. With 20% cutting loss: purchase price ÷ 0.80.

2

Weigh all ingredients per portion

Measure exactly how much of each ingredient goes into one portion. Don't forget sides, sauces, and small ingredients like spices and oil.

3

Calculate and add up

Multiply weight per ingredient by the actual kilo price. Add all costs together for the total cost price per portion.

✨ Pro tip

Recalculate your top 3 menu items every 2 weeks - they drive 60% of your revenue. If those costs stay accurate, you'll control most of your food cost variance.

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In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.

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Frequently asked questions

Should I include VAT in my cost price calculation?

No, cost price excludes VAT. You pass VAT through to tax authorities - it's not a real cost for your operation. Always calculate excluding VAT.

How often should I update my kilo prices?

Monthly for your main ingredients, minimum. Suppliers raise prices regularly and often without advance notice. Check prices with each delivery to catch changes early.

What if I have different suppliers for the same product?

Calculate a weighted average based on purchase volume from each supplier. Or use your primary supplier's price if they handle 70% or more of that ingredient.

How do I account for cutting loss in my kilo price?

Divide purchase price by yield percentage. With 30% cutting loss, you have 70% yield: €20/kg ÷ 0.70 = €28.57/kg actual price.

Do I need to calculate small ingredients like salt and pepper separately?

For minimal quantities, estimate 5-10% of your main ingredient cost. But calculate expensive spices and seasonings precisely - they can surprise you.

What's a realistic food cost percentage for different restaurant types?

Most restaurants run 28-35%. Fine dining can push 40%, while fast-casual often hits 20-25%. Your concept and local market determine the sweet spot.

ℹ️ This article was prepared based on official sources and professional expertise. While we strive for current and accurate information, the content may differ from the most recent regulations. Always consult the official authorities for binding standards.

📚 Sources consulted

Food Standards Agency (FSA) https://www.food.gov.uk

The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.

JS

Written by

Jeffrey Smit

Founder & CEO of KitchenNmbrs

Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.

🏆 8 years kitchen manager at 1NUL8 Group Rotterdam
Expertise: food cost management HACCP kitchen management restaurant operations food safety compliance

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